The Secure Electronic Transaction (SET) Protocol Aims to Improve Credit

question 7

Multiple Choice

The Secure Electronic Transaction (SET) protocol aims to improve credit card security by:

• A) Monitoring transactions on the internet.
• B) monitoring merchants' collection of data.
• C) using encryption and authentication technology.
• D) adding additional passwords to credit card transactions.
• E) requiring merchants to enter a password prior to approval of transactions.

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Definitions:

Asymmetric Information

A situation where one party to a market transaction has more information about a product or service than the other. The result may be an under- or overallocation of resources.

Adverse Selection

A situation in insurance and finance where individuals with higher risks are more likely to purchase or participate in a plan, leading to higher than expected costs for insurers or lenders.

Marginal Benefit

The extra utility or satisfaction obtained through the consumption of an additional unit of a good or service.

Pollution Abatement

Actions or measures taken to reduce, control, or eliminate pollution from various sources.